Bank of Canada

About Bank of Canada

Founded in 1935 as a private corporation, nationalized in 1938. The Bank of Canada managed Canadas finances during World War II, introducing Victory Bonds. The bank pioneered the concept of functional finance, using monetary policy actively to manage the economy. Governor Graham Towers established the principle that the central bank should serve the public interest. Canada did not experience bank failures during the Great Depression due to its conservative, well regulated banking system. Canadian banks weathered the 2008 crisis without failures, requiring no bailouts. The Bank of Canada targets 2 percent inflation and is known for its transparency.